Your long recruitment process is finally over: you’ve found the perfect candidate. You send an offer, but you get a disappointing reply. They want more money. Not just more – too much. Much more than you’d ever considered for that position.
Now what? In the abstract, of course, it’s easy to suggest the obvious. You should move on to someone who will accept a more budget-friendly salary.
In practical terms, however, it’s often not that simple. You only extended the job offer in the first place because you’ve become attached to a candidate. You want them as part of your team. It’s tough to give up on this without a longer discussion.
Also, it’s important to realize that a negotiation often comes as part of the process. One Glassdoor study found that the average American can earn up to $7,500 by simply asking for more. With this incentive, you can’t be surprised when a counteroffer comes.
Meanwhile, the stats point to a relatively widespread pattern. Figures compiled by Robert Half showed that about four out of 10 job candidates (39%) negotiate for a higher salary. You should consider it a normal part of business.
Still, you need to know how to react when the time comes. To paraphrase the song, you have to know when to negotiate, when to give in, and when to walk away.
Here are some tips to keep in mind when a candidate wants too much money:
Do Your Research Before You Make an Offer
Before extending a job offer to any employee, research the current market rates for that position. This will let you know whether your salary levels remain competitive with other players in your industry.
Then, when you receive a counter from your selected candidate, you’ll know whether that salary requirement fits into the overall market dynamics. In other words, you’ll know if the request is reasonable or not. You can then respond with more confidence.
Don’t Give an Immediate Response
If you receive a counteroffer, take a bit of time to consider it. Don’t reply in the heat of the moment. Instead, make a rational assessment of the situation.
At the same time, don’t let emotion play a role in your reply. You should make the best decision for your team. A heated conversation won’t improve your chances of getting the ideal business result.
Look at Your Budget
What will be the impact of raising your offer for a particular candidate? Will it bust your budget? Or can you absorb the higher salary and receive value from a better-than-expected candidate?
These questions will let you know whether you can even entertain a higher bid. If you face significant budget restraints, whether the candidate is worth the extra salary will become beside the point. If you can’t afford it, you’ll have to move on.
Consider the Other Members of Your Team
These negotiations impact more than a single person’s salary. You already have a staff, with each team member receiving a certain compensation level. You have to consider how your decision for this incoming employee will impact perceptions around the office.
Sell Other Aspects of the Job
Money isn’t the only factor that candidates consider when they weigh potential job offers. They also turn to benefits, scheduling details, and culture to make their decision.
You might not be able to meet their salary demand. However, you can try to sell the other advantages your company provides. Make an argument that highlights the other selling points for taking your position.
Weigh Your Options
If you can’t reach an agreement with this candidate, what are your other options? This dynamic will decide how accommodative you need to be to their salary expectations.
Consider the other candidates in your current talent pool. You might be able to turn to someone with similar qualifications, but lower compensation demands. Also, think about what would happen if you don’t fill the role immediately. You might have room to look elsewhere for a good candidate.
Getting expert advice will help you make the right decision. A strong recruiting partner, like PrideStaff, will let you find the right workers at a reasonable cost.
Contact PrideStaff Bend today to upgrade your recruiting efforts.